ind the SPE of the variant of the two-period sequential bargaining game in which player i's payoff when she accepts the proposal (y1; y2) in period 2 is yi - ci, where 0 < ci < 1 (rather than iyi), and her payoff to any terminal history that ends in rejection is -ci (rather than 0), for i = 1; 2. Note that payoffs can be negative, but a proposal must still be a pair of non-negative number

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Find the SPE of the variant of the two-period sequential bargaining game in which player i's payoff when she accepts the proposal (y1; y2) in period 2 is yi - ci, where 0 < ci < 1 (rather than iyi), and her payoff to any terminal history that ends in rejection is -ci (rather than 0), for i = 1; 2. Note that payoffs can be negative, but a proposal must still be a pair of non-negative numbers.
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